XML 41 R26.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company has geographic-based and business-based operational segments. Geographic-based operations are further segmented into traditional and financial solutions businesses.
The U.S. and Latin America Traditional segment provides individual and group life and health reinsurance to domestic clients for a variety of products through yearly renewable term agreements, coinsurance, and modified coinsurance. The U.S. and Latin America Financial Solutions segment includes asset-intensive products that concentrate on the investment risk within underlying annuities and corporate-owned life insurance policies, financial reinsurance, and capital solutions that assists ceding companies in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position.
The Canada Traditional segment is primarily engaged in individual life reinsurance, and to a lesser extent creditor, group life and health, critical illness and disability reinsurance, through yearly renewable term and coinsurance agreements. The Canada Financial Solutions segment concentrates on assisting clients with longevity risk transfer structures within underlying annuities and pension benefit obligations, and provides capital solutions to assist clients in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position through financial reinsurance and other capital solutions structures.
The Europe, Middle East and Africa Traditional segment provides individual and group life and health products through yearly renewable term and coinsurance agreements, reinsurance of critical illness coverage that provides a benefit in the event of the diagnosis of a pre-defined critical illness and underwritten annuities. The Europe, Middle East and Africa Financial Solutions segment provides longevity, asset-intensive and financial reinsurance. Longevity reinsurance takes the form of closed block annuity reinsurance and longevity swap structures.
The Asia Pacific Traditional segment provides individual and group life and health reinsurance, critical illness coverage, disability and superannuation through yearly renewable term and coinsurance agreements. The Asia Pacific Financial Solutions segment provides financial reinsurance, asset-intensive and certain disability and life blocks.
Corporate and Other revenues primarily include investment income from unallocated invested assets, investment related gains and losses and service fees. Corporate and Other expenses consist of the offset to capital charges allocated to the operating segments within the policy acquisition costs and other insurance income line item, unallocated overhead and executive costs, interest expense related to debt, and the investment income and expense associated with the Company’s collateral finance and securitization transactions and service business expenses. Additionally, Corporate and Other includes results from certain wholly-owned subsidiaries, such as RGAX, and joint ventures that, among other activities, develop and market technology, and provide consulting and outsourcing solutions for the insurance and reinsurance industries. The Company has increased its investment and expenditures in this area in an effort to both support its clients and accelerate the development of new solutions and services to increase consumer engagement within the life industry.
The accounting policies of the segments are the same as those described in Note 2 – “Significant Accounting Policies and Pronouncements.” The Company measures segment performance primarily based on profit or loss from operations before income taxes. There are no intersegment reinsurance transactions and the Company does not have any material long-lived assets.
The Company allocates capital to its segments based on an internally developed economic capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model considers the unique and specific nature of the risks inherent in the Company’s businesses. As a result of the economic capital allocation process, a portion of investment income is attributed to the segments based on the level of allocated capital. In addition, the segments are charged for excess capital utilized above the allocated economic capital basis. This charge is included in policy acquisition costs and other insurance expenses.
Information related to revenues, income (loss) before income taxes, interest expense, depreciation and amortization, and assets of the Company’s operations are summarized below (dollars in millions):
For the years ended December 31,202120202019
Revenues:
U.S. and Latin America:
Traditional$7,198 $6,560 $6,500 
Financial Solutions1,492 1,220 1,279 
Total8,690 7,780 7,779 
Canada:
Traditional1,448 1,260 1,286 
Financial Solutions101 92 99 
Total1,549 1,352 1,385 
Europe, Middle East and Africa:
Traditional1,827 1,633 1,520 
Financial Solutions616 471 450 
Total2,443 2,104 1,970 
Asia Pacific:
Traditional2,778 2,806 2,681 
Financial Solutions417 309 228 
Total3,195 3,115 2,909 
Corporate and Other781 245 257 
Total$16,658 $14,596 $14,300 
For the years ended December 31,202120202019
Income (loss) before income taxes:
U.S. and Latin America:
Traditional$(540)$(298)$265 
Financial Solutions515 295 398 
Total(25)(3)663 
Canada:
Traditional128 134 168 
Financial Solutions15 21 15 
Total143 155 183 
Europe, Middle East and Africa:
Traditional(239)27 80 
Financial Solutions303 258 223 
Total64 285 303 
Asia Pacific:
Traditional(10)174 105 
Financial Solutions98 59 23 
Total88 233 128 
Corporate and Other421 (117)(145)
Total$691 $553 $1,132 
For the years ended December 31,202120202019
Interest expense:
Corporate and Other$127 $170 $173 
Total$127 $170 $173 
For the years ended December 31,202120202019
Depreciation and amortization:
U.S. and Latin America:
Traditional$360 $291 $291 
Financial Solutions80 90 143 
Total440 381 434 
Canada:
Traditional21 24 20 
Financial Solutions— — — 
Total21 24 20 
Europe, Middle East and Africa:
Traditional66 46 56 
Financial Solutions1 1 1 
Total67 47 57 
Asia Pacific:
Traditional87 94 60 
Financial Solutions43 20 16 
Total130 114 76 
Corporate and Other22 23 22 
Total$680 $589 $609 
The table above includes amortization of DAC, including the effect from investment related gains and losses.
For the years ended December 31,20212020
Assets:
U.S. and Latin America:
Traditional$20,572 $20,071 
Financial Solutions29,028 25,433 
Total49,600 45,504 
Canada:
Traditional5,091 4,682 
Financial Solutions18 13 
Total5,109 4,695 
Europe, Middle East and Africa:
Traditional4,670 4,763 
Financial Solutions7,165 7,292 
Total11,835 12,055 
Asia Pacific:
Traditional10,048 8,197 
Financial Solutions7,678 4,299 
Total17,726 12,496 
Corporate and Other7,905 9,906 
Total$92,175 $84,656 
Companies in which the Company has significant influence over the operating and financing decisions but are not required to be consolidated, are reported on the equity basis of accounting. The equity in the net income of such investments is not material to the results of operations or financial position of individual segments or the Company taken as a whole. Capital expenditures of each reporting segment were immaterial in the periods noted.
No individual client generated 10% or more of the Company’s total gross premiums and other revenues on a consolidated basis in 2021, 2020 and 2019. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.